Last checked at 19 Feb 2020 12:30
UK Oil & Gas PLC
("UKOG" or the "Company")
Horse Hill-2z Water Shut Off Intervention Commences
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that operations to shut off formation water ingress into its Horse Hill-2z ("HH-2z") horizontal production well have commenced. By means of a Halliburton coiled tubing unit, production logging tools will be run along the entire length of the 2,500 ft horizontal section to identify the source of water ingress, thought to be from a series of open natural fractures at the base or "toe" of the wellbore.
Once identified, the source of water ingress will be isolated, either via a rigid setting fluid plug, or by a conventional cementing and selective perforation programme. A resumption of HH-2z extended well test operations is planned to follow directly after a successful intervention. Portland oil pool test production from HH-1 will continue during the intervention.
UKOG holds a controlling 85.635% interest in the Horse Hill oil field and surrounding highly prospective PEDL137 and PEDL246 licences, which are operated by UKOG's subsidiary company, Horse Hill Developments Ltd.
Stephen Sanderson, UKOG's Chief Executive, commented:
"We look forward to a successful intervention programme and the near-term resumption of test oil production from the new HH-2z horizontal well."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has over 36 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.
For further information, please contact:
UK Oil & Gas PLC
Stephen Sanderson / Kiran Morzaria Tel: 01483 941493
WH Ireland Ltd (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Joe Nally / Neil McDonald Tel: 020 7397 8919
Novum Securities (Joint Broker)
John Bellis Tel: 020 7399 9400
Public Relations
Brian Alexander Tel: 01483 900582
Glossary
coiled tubing (CT) | a very long, narrow (typically 1 to 3.5 inch diameter) continuously welded metal tube, which is supplied spooled on a large reel. It is used for interventions to convey tools and/or fluids to specific downhole locations where deployment via wireline or other conventional means is impossible or impractical i.e. in existing deviated and horizontal wells. It can also be used for drilling purposes in existing wellbores via the installation of a drill bit and bottom hole assembly powered solely by drilling fluid circulation. Its use removes the need for a workover rig as most CT units are self-contained and trailer mounted. |
horizontal well | a well that during drilling is steered so as to follow and remain within a particular geological stratum or reservoir unit having a trajectory that runs approximately parallel to the top and or base of the target horizon |
oil field | an accumulation, pool or group of pools of oil in the subsurface that produces oil to surface |
production logging tools (PLTs) | PLTs measure flowing fluid parameters on a zone-by-zone basis within a producing well. They provide diagnostic information, pinpoint where fluids such as water, oil and gas are entering a well and gives an indication about the efficiency of the perforations. PLTs normally measure four parameters: flow (via a series of spinners which rotate in the flow), density, temperature and pressure. The flow and density readings are used in traditional quantitative production logging analysis, whilst temperature and pressure data are used in more of a qualitative way to compute in-situ flow properties and locate zones of entry of fluids into a well |
well test | or flow test involves testing a well by flowing hydrocarbons to surface, typically through a test separator over a flowing period of up to 96 hours; key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate and volumes. An extended well test or EWT is a well test with duration of over 96 hours and up to 90 or 180 flowing days aimed at assessing longer term production viability and the connected oil in place seen by the well. |
UKOG Licence Interests
The Company has interests in the following UK licences:
Asset | Licence | UKOG Interest | Licence Holder | Operator | Area (km2) | Status |
Avington 1 | PEDL070 | 5% | UKOG (GB) Limited | IGas Energy Plc | 18.3 | Field currently temporarily shut in |
Broadford Bridge/Loxley/Godley Bridge 2, 3, 8 | PEDL234 | 100% | UKOG (234) Ltd 4 | UKOG (234) Ltd 4 | 300.0 | BB-1/1z oil discovery, Loxley-1 gas appraisal well planning application submitted |
A24 3 | PEDL143 | 67.5% | UKOG | UKOG 7 | 91.8 | Finalising new site selection to drill Portland and Kimmeridge prospects |
Horndean 1 | PL211 | 10% | UKOG (GB) Limited | IGas Energy Plc | 27.3 | Field in stable production |
Horse Hill 5 | PEDL137 | 85.635% | Horse Hill Developments Ltd ⁶ | Horse Hill Developments Ltd ⁶ | 99.3 | Production tests ongoing, HH-2/2z drilling completed |
Horse Hill 5 | PEDL246 | 85.635% | Horse Hill Developments Ltd ⁶ | Horse Hill Developments Ltd ⁶ | 43.6 | As above |
Isle of Wight (Onshore) 2, 3 | PEDL331 | 95% | UKOG | UKOG | 200.0 | Preparing planning submission for Arreton oil appraisal well and Godshill exploration well |
Markwells Wood | PEDL126 | 100% | UKOG (GB) Limited | UKOG (GB) Limited | 11.2 | MW-1 P&A |
Notes:
1. Oil field currently in stable production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads.
4. Contains the Broadford Bridge-1/1z Kimmeridge oil discovery, the eastern extension of the Godley Bridge Portland gas discovery, plus further undrilled Kimmeridge exploration prospects.
5. Portland and Kimmeridge Oil field with productive and commercially viable zones, EWT ongoing, production planning consent granted in September 2019, appraisal/development drilling campaign completed. Long term Production start expected Spring 2020.
6. UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.
7. OGA consent received for the transfer of operatorship from Europa to UKOG
8. Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014